COBRA question

[LXEX55]

I am retiring on March 29th. I got a letter from HR that said my benefits would cease that day and that I would be mailed COBRA sign up forms in about two to three weeks. I asked the HR person what about the intrim three weeks or so inbetween March 29th and my eventual signup. She said I have to pay my own medical bills for that period, and once covered, I get reimbursed. Has anyone who had been on COBRA experienced this? I assume this is the norm? Any COBRA advice appreciated. My wife is a two times cancer survivor so this is very important to me. Thanks very much,

 

[Aerides]

This is normal, though it's possible you might be able to call your cobra providers to move it up a bit. My MC was very Mega, so it was a same day phone call/sign up. No lag.

But I did wait a week or three and shop around. Because, yes, when you do sign up for cobra, it is retro active to the date you left your MC (or the end of the month in some cases, where your regular employer coverage lasts till month end...not much difference in your case).

I remember asking what happened if I had an issue in the "gap" and got the same answer, that cobra would kick in and cover all once I signed up and paid.

In your case, if there's no way to tighten the gap, maybe book a check up before month end, get any prescription refills squared away, just to be on the extra safe side?

 

[Col. Klink]

Yes, as Aerides indicated, this is normal. One other option is that you have is getting health insurance through the ACA. Separation of employment is a qualifying event. Check that out as an option. It may be less expensive than COBRA.

 

[GalaxyBoy]

This is why I always scheduled my last days on my various jobs at the first of the month vs. the last. That way, I was covered for the full month. Once I was laid off and by procrastinating buying COBRA I was able to go without coverage until I got my new job. I figured if I got hit by a beer truck in the interim I would retroactively choose coverage. I've forgotten the time you can go, but it's surely in the package you'll get upon termination.

 

[ocean view]

Change your term date to April 1, then you’ll get coverage for all of April.

 

[DenverGuy42]

You probably won't have to pay any medical bills.

I was on my wifes plan until Jan 4th this year. Then we went COBRA. There was a period of time that United Health Care rejected payments - until the first COBRA check was cashed. The providers, without exception, all resubmitted their claims - and all claims were processed. I wasn't involved at all in this, it all just happened.

All you'll have to do it tell your provider (dr) to resubmit the claim after they cash your COBRA check.

I had more than 24,000$ billed to me in January (ER visit being the most costly part of that) and most were rejected - resubmitted - and then paid out as normal. I think medical providers are very used to this and just resubmit without question.

 

[jollystomper]

It should not be a big deal as most providers seem to be aware of this. I had a scheduled doctor visit postponed, due to a change in the doctors schedule, into the month after my retirement during the COBRA "gap". I explained to the office they might encounter an issue when they submitted to my insurance. They said not to worry, they were familiar with this COBRA procedure, if anything bounced back they would just wait and resubmit. This practice does not bill me for any co-pay until after they pass it thru insurance.

 

[JoeWras]

You will also probably get the COBRA information packet from a third party that your Corp. hires to handle this.

Both my sister and I got our COBRA stuff from the same vendor, completely different corporations.

I will say the forms from this vendor (forgot the name) were incredibly arcane with extremely small and voluminous print. Make sure got get new glasses before quitting, or at least the next power up on your reading glasses.

By the way, I got the forms about 18 days after separation, so, yeah, 2 to 3 weeks sounds right.

 

[DenverGuy42]

You will also probably get the COBRA information packet from a third party that your Corp. hires to handle this.

Both my sister and I got our COBRA stuff from the same vendor, completely different corporations.

I will say the forms from this vendor (forgot the name) were incredibly arcane with extremely small and voluminous print. Make sure got get new glasses before quitting, or at least the next power up on your reading glasses.

By the way, I got the forms about 18 days after separation, so, yeah, 2 to 3 weeks sounds right.

Indeed, we scanned our form and used a PDF editor to fill in the blanks. First and foremost to make sure our writing was readable, and secondly to be able to read it in the first place.

And the COBRA people don't make it easy. At least not ours.

NO online payment possible. must mail a physical check.

NO warning about a missed payment, if they do not receive the check by the end of month, you are cut off and cannot restart.

NO system to see where/what you've paid up for. We just mail the check and then watch to make sure it cleared in a reasonable amount of time. We mail on the 1st of the month and it takes a good two weeks - at least - for them to process the check. We are watching to make sure we don't have to overnight a payment to them during the last week of the month.


It is almost as if they want you to fall off the rolls, and get kicked out of the program. It was very much like going back to the 1970's/early 80's as far as applying and paying for it all. Been a long time since I've kept track of cancelled checks as a method of ensuring somethings been paid.

 

[JoeWras]

Indeed, we scanned our form and used a PDF editor to fill in the blanks. First and foremost to make sure our writing was readable, and secondly to be able to read it in the first place.

And the COBRA people don't make it easy. At least not ours.

NO online payment possible. must mail a physical check.

NO warning about a missed payment, if they do not receive the check by the end of month, you are cut off and cannot restart.

NO system to see where/what you've paid up for. We just mail the check and then watch to make sure it cleared in a reasonable amount of time. We mail on the 1st of the month and it takes a good two weeks - at least - for them to process the check. We are watching to make sure we don't have to overnight a payment to them during the last week of the month.


It is almost as if they want you to fall off the rolls, and get kicked out of the program. It was very much like going back to the 1970's/early 80's as far as applying and paying for it all. Been a long time since I've kept track of cancelled checks as a method of ensuring somethings been paid.

Exactly!

 

[Aerides]

Change your term date to April 1, then you’ll get coverage for all of April.

This does not always work. My last day with my MC was the 10th; my coverage ended that day without cobra.

 

[24601NoMore]

If you're comparing costs, be sure to include the deductible on both COBRA and alternatives (eg: ACA) as it's pretty typical for your existing company HC plan to have a LOT lower deductibles than you can ever hope to find on the "A"CA..

For example - I have a "high" deductible corporate plan, with a $1,500 deductible. That's actually good, as the best "A"CA PPO Plan I can find is $6,500 (!!) per person deductible.

Thank heavens I can stay on COBRA for 18 months and plan to. Net, it is less expensive than the "A"CA..

 

[Dash man]

Our COBRA was less than any of the ACA plans with better coverage. We set up automatic payments that they drew from our checking account. DW is also a cancer survivor and we weren’t going to take any chances.

 

[24601NoMore]

Our COBRA was less than any of the ACA plans with better coverage. We set up automatic payments that they drew from our checking account. DW is also a cancer survivor and we weren’t going to take any chances.

Ditto that. The "A"CA plans are generally horrible compared to corporate-sponsored HC - even if you have to pay (generally through the nose) to continue coverage via COBRA.

 

[JoeWras]

One more important thing about COBRA: you do not restart a deductible balance. It carries over. If you had anything going on in the first three months of the year that built up a deductible, you want to take that with you.

My Megacorp has a retiree buy in. The cost per month is similar to COBRA, actually slightly less for a higher co-insurance. Megacorp gives options like: 1) Take COBRA now, sign up for retiree later; 2) Take Retiree now; 3) Decline

I asked why the 1 and 2 options? Looks like #2 makes the most sense because getting to co-insurance isn't a usual event in most years. Megacorp benefits said it was because of the deductible reset.

Ah, makes sense. Most people take COBRA until year end, then start retiree at the year start with a fresh deductible.

As for ACA, the cost in my state is pretty high with lousy networks of doctors. Look at the network! Same insurance company has special networks for ACA compared to their other plans. Their other plans have generously wide doctor networks. The ACA has a limited and focused network. None of my doctors were in it.

 

[Bir48die]

Change your term date to April 1, then you’ll get coverage for all of April.

That's exactly what I did three years ago.

 

[JoeWras]

That's exactly what I did three years ago.

Depends on the plan. Most terminate at the end of the month of termination. But there are exceptions to this as Aerides above pointed out.

 

[Cat-tirement]

NO online payment possible. must mail a physical check.



NO warning about a missed payment, if they do not receive the check by the end of month, you are cut off and cannot restart.



NO system to see where/what you've paid up for. We just mail the check and then watch to make sure it cleared in a reasonable amount of time. We mail on the 1st of the month and it takes a good two weeks - at least - for them to process the check. We are watching to make sure we don't have to overnight a payment to them during the last week of the month.

When we were on COBRA there was a payment option of credit card, which I used to get immediate confirmation. The surcharge was more than covered by the 2% rewards.

 

[orchid55]

We also had the check only situation for payment. The COBRA administrator did not take credit cards at all. However they were willing to do an automatic bank draft - I was uncomfortable with that option.

 

[jollystomper]

Only my first COBRA payment had to be done by check. The subsequent ones they deduct directly from my pension, so no payment issues.

 

[OHjosh]

ACA in COBRA eligible situation

Yes, as Aerides indicated, this is normal. One other option is that you have is getting health insurance through the ACA. Separation of employment is a qualifying event. Check that out as an option. It may be less expensive than COBRA.

My experience: ACA software asks if you are eligible for COBRA. Say yes and "it" turns you down.

 

[LRDave]

My experience: ACA software asks if you are eligible for COBRA. Say yes and "it" turns you down.

https://www.verywellhealth.com/cobra-obamacare-subsidy-1738953


COBRA eligibility does not prevent you from entering the marketplace after a qualifying event (job loss, spouse death, etc.).

 

[Aerides]

My experience: ACA software asks if you are eligible for COBRA. Say yes and "it" turns you down.

Eligibility for cobra does not disqualify you from the ACA.

Being actively enrolled in cobra at the same time does, because it means you are currently covered. You can't just drop Cobra in the middle of the year, and flip to aca, without a qualifying event.

For most that means, if you take cobra in march, you stay on it until the normal enrollment period and flip to aca starting for January of next year, or you wait until cobra ends and then go to the ACA.

 

[Montecfo]

This does not always work. My last day with my MC was the 10th; my coverage ended that day without cobra.

Yes, depends on the employer's contract with providers.

 

[Montecfo]

This is why I always scheduled my last days on my various jobs at the first of the month vs. the last. That way, I was covered for the full month. Once I was laid off and by procrastinating buying COBRA I was able to go without coverage until I got my new job. I figured if I got hit by a beer truck in the interim I would retroactively choose coverage. I've forgotten the time you can go, but it's surely in the package you'll get upon termination.

Yeah, so you have the 60 day notice period to enroll, then an additional 45 days to make your initial payment. It is quite a lookback period, 105 days.